One advantage of monetary policy over fiscal policy is that a. the decision lag is...

One advantage of monetary policy over fiscal policy is that
a. the decision lag is much shorter
b. high interest rate do not hurt anybody, but high taxes did
c. it effects are easier to predict
d. its effects are felt uniformly throughout the economy?

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Answers (2)

isaaq
3 months ago
Answer
B. high interest rate do not hurt anybody, but high taxes did

Monetary policy and fiscal policy are not equally good as ways to stimulate the economy. Traditional monetary policy (that is, lowering the short-term interest rate) has two key advantages over traditional fiscal policy: It does not add to the national debt.
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